South Korea stocks set for fifth week of gains
- The benchmark KOSPI added 1.31 points, or 0.05%, to 2,622.67
Round-up of South Korean financial markets:
South Korea stocks fall as rally from US-China trade talks loses steam
South Korean shares rose on Friday and were set to log a fifth week of gains, as US data suggested the Federal Reserve is likely to cut interest rates twice this year. The won strengthened, while the benchmark bond yield fell.
The benchmark KOSPI added 1.31 points, or 0.05%, to 2,622.67 as of 01:10 GMT. It is up 1.79% so far this week.
Rate cut expectations in the US often drive similar optimism in South Korea’s interest rate outlook.
Among index heavyweights, chipmaker Samsung Electronics fell 0.87%, while peer SK Hynix gained 2.74%. Battery maker LG Energy Solution slid 4.07%.
US producer prices posted a surprise fall in April as the cost of services declined by the most since 2009, hurt by ebbing demand for air travel and hotel accommodation.
Hyundai Motor and sister automaker Kia gained 0.47% and 0.66%, respectively. Steelmaker POSCO Holdings shed 0.8%. Drugmaker Samsung Biologics rose 0.10%.
Of the total 933 traded issues, 305 advanced and 586 declined. ** Foreigners were net buyers of shares worth 47.8 billion won ($34.2 million).
The won was quoted at 1,397.9 per US dollar on the onshore settlement platform, 0.01% higher than Thursday’s close of 1,398.0.
In offshore trading, the won was quoted at 1,397.3 per dollar, down 0.1% on the day, while in non-deliverable forward trading, its one-month contract was quoted at 1,394.2.
The KOSPI has risen 9.30% year-to-date, while the won has strengthened 5.3% against the dollar in the same period.
In the money and debt markets, June futures on three-year treasury bonds gained 0.1 point to 107.65.
The most liquid three-year Korean treasury bond yield fell 4.0 basis points to 2.321%, while the benchmark 10-year yield fell 4.9 basis points to 2.681%.